Which of the following examples would most likely be part of a perfectly competitive market?
a. cotton growers
b. computer companies
c. shoe manufacturers
d. automotive businesses
a. cotton growers
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Assuming a reserve ratio of 10 percent, if a bank receives $100,000 in deposits how much can the bank loan out?
A) $10,000 B) $90,000 C) $100,000 D) $110,000
Paul's monthly income decreased from $2,500 to $2,300. As a result, he decreased the number of DVDs he rents per month from 5 to 4. Paul's demand for DVD rentals is
A) price elastic. B) price inelastic. C) income elastic. D) income inelastic.
Under the model of monopolistic competition, a(an) ________ in the number of firms in the industry will cause ________ to ________
A) increase; average price; decrease B) increase; average price; increase C) increase; average cost; decrease D) decrease; markup; decrease E) increase; marginal cost; decrease
As Product Co adds the first four workers to its production process in the short run, its output rises from 0 to 12 to 25 to 35 to 43 . Addition of the fifth worker will most likely lead to an output rate
a. greater than 51 b. equal to 51 c. less than 51 d. greater than 51 if the firm experiences diseconomies of scale e. none of the above